Firms most likely borrow money in the international bond market to ________.

Question

Quizplus · Accepted Answer

Firms often borrow money in the international bond market to diversify their funding sources and reduce their dependence on domestic lenders. This can help them access cheaper financing options and provide greater flexibility in managing their debt. High yields and low rates are not guaranteed in the international bond market and borrowing money in this market may not necessarily protect against costly government regulations. While emerging markets may invest in foreign exchange, this is not necessarily the primary reason firms borrow money in the international bond market.

Firms Most Likely Borrow Money in the International Bond Market